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The third-quarter 2024 earnings season is in top gear. We are in the second half of the reporting cycle. This week will be the last big week, with around 1,600 companies set to report their quarterly financial numbers. More than 90% of companies from Wall Street’s broad-market benchmark — the S&P 500 Index — will also report their results.
Meanwhile, we have selected three companies for investors’ that will report tomorrow. These stocks, with a favorable Zacks Rank, are likely to beat third-quarter 2024 earnings estimates. Moreover, they have solid near-term price upside potential. These three companies are — Exact Sciences Corp. EXAS, DuPont de Nemours Inc. DD and Kinross Gold Corp. KGC.
Third-Quarter Earnings Season So Far
As of Friday, 350 S&P 500 companies have reported their quarterly financial numbers. Total earnings of these companies are up 8.8% year over year on 5.7% higher revenues, with 74.9% beating earnings per share (EPS) estimates and 60.6% beating revenue estimates.
Looking at the third quarter as a whole, total earnings for the S&P 500 Index are expected to be up 6.8% from the same period last year on 5.4% higher revenues. This follows 10.2% year-over-year EPS growth on 5.5% higher revenues in the previous quarter.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
3 Stocks to Buy Ahead of Earnings Results Tuesday
We have narrowed our search to three large-cap stocks set to report results on Tuesday. Each of these stocks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better (Rank #1 or 2) and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of our three picks in the past three months.
Zacks Investment Research
Image Source: Zacks Investment Research
Exact Sciences Corp.
Exact Sciences has been intensifying its efforts to further solidify the flagship Cologuard test as the standard of care in colorectal cancer screening. EXAS continues to extend and leverage its unique technology platform to connect with more patients through personalized experiences. In Precision Oncology, the success of Oncotype DX internationally highlights the significant opportunities ahead.
Meanwhile, EXAS is advancing in its key pipeline programs, including the Cologuard Plus, OncoDetect MRD test, and the blood-based colon cancer screening test. A strong infrastructure, wide commercial network and tie-ups allow Exact Sciences to expand the reach of these tests. Added to this, sound financial stability instills optimism.
Zacks Rank #1 EXAS has an Earnings ESP of +39.49%. The company will report after the closing bell. EXAS has an expected revenue and earnings growth rate of 13.4% and 15.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.7% over the past 90 days.
Solid Upside Left for EXAS Shares
The average short-term price target of brokerage firms represents an increase of 16.7% from the last closing price of $69.80. The brokerage target price is currently in the range of $61-$100. This indicates a maximum upside of 43.3% and a maximum downside of just 12.6%.
DuPont de Nemours Inc.
DuPont de Nemours remains steadfast in its pursuit of top-line growth through innovation, acquisitions, and new product development. Recent acquisitions bolster DD’s position in high-growth healthcare markets, while divestitures of non-core assets align with its strategy of focusing on high-margin businesses.
Efforts to boost DD’s profitability through cost-cutting, pricing actions, and productivity improvements are underway, with expected benefits to be realized in 2024. Zacks Rank #2 DuPont de Nemours has an Earnings ESP of +0.97%. The company will report before the opening bell.
DD has an expected revenue and earnings growth rate of 3.1% and 8.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 30 days.
Impressive Upside Potential for DD Stock
The average short-term price target of brokerage firms represents an increase of 17.1% from the last closing price of $82.5. The brokerage target price is currently in the range of $84-$105. This indicates a maximum upside of 27.3% and no downside.
Kinross Gold Corp.
Kinross Gold is focusing on organic growth through its Tasiast mine, where the Phase One expansion boosted production capacity, and the Tasiast 24K expansion further increased throughput and production. KGC’s Paracatu mine is set to increase production in 2024, while the Gilmore and Manh Choh projects at Fort Knox are expected to extend operations and benefit from higher gold prices.
The Great Bear project in Ontario offers a promising long-term opportunity with substantial gold resources. Surging gold prices should boost KGC’s profitability and drive cash flow generation. The rally has been driven by strong demand from central banks, a dovish Fed interest rate outlook and increased tensions in the Middle East, leading to a surge in safe-haven demand.
Zacks Rank #1 Kinross Gold has an Earnings ESP of +3.18%. The company will report after the closing bell. KGC has an expected revenue and earnings growth rate of 14.9% and 50%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.5% over the last 30 days.
Strong Upside for KGC Stock
The average short-term price target of brokerage firms represents an increase of 12.4% from the last closing price of $9.98. The brokerage target price is currently in the range of $8.40-$14.45. This indicates a maximum upside of 44.8% and a maximum downside of just 15.8%.
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